Tax Newsletter - April 2017

05 / 03 / 2017

April newsletter prepared by professionals from the Tax Department.

1. Judments

1 Corporate income tax.- Any legislation which subjects tax-free treatment to a prior approval process only in the case of cross-border mergers is contrary to the freedom of establishment (Court of Justice of the European Union. Judgment of March 8, 2017, case C-14/16)
2 Corporate income tax.- A cassation appeal cannot be founded on an infringement of OECD Guidelines (Supreme Court. Judgment of March 2, 2017)
3 Corporate income tax.- The transactional net margin method does not apply in fiscal years that began before December 1, 2006 (Supreme Court. Judgment of February 21, 2017)
4 Corporate income tax.- The reduction for the assignment of intangible assets requires know-how to be distinguished from technical assistance (Andalucía High Court. Judgment of October 21, 2016)
5 Transfer and stamp tax.- The base for the stamp tax on a grouping of properties is the land value entered at the Property Registry (Supreme Court. Judgment of March 15, 2017)
6 Management procedure.- The tax authorities may not impose the method for valuing property for tax purposes that gives the highest value (Castilla-La Mancha High Court. Judgment of December 30, 2017)
7 Collection procedure.- Interest on stayed debt obligations in respect of a stayed penalty is not transferable to the heirs of the infringing taxable person (Supreme Court. Judgment of March 9, 2017)

2. Administrative doctrine

1 Corporate income tax.- Offsetting NOLs is a tax option (Central Economic-Administrative Tribunal. Decision of April 4, 2017)
2 Corporate income tax.- The distribution of dividends originating from earlier contributions is an indirect repayment of contributions (Directorate-General for Taxes. Ruling V0269-17, of February 1, 2017)
3 Personal income tax.- Characterization in connection with professionals invited as guests to congresses (Central Economic-Administrative Tribunal. Decision of April 4, 2017)
4 Personal income tax.- The sums received in respect of a partner’s departure from a firm for which professional services were provided are not multiyear income (Central Economic-Administrative Tribunal. Decision of April 4, 2017)
5 IRPF.- Application of the inbound expatriates regime to a person who is both company director and sales director (Directorate-General for Taxes. Ruling V0321-17, of February 7, 2017)
6 Nonresident income tax.- Treatment of the repayment of contributions to a Luxembourg company (Directorate-General for Taxes. Ruling V0343-17, of February 8, 2017)
7 Nonresident income tax.- Tax treatment of an intragroup remission of debt where the borrower is nonresident (Directorate-General for Taxes. Ruling V0337-17, of February 7, 2017)
8 VAT.- The special deductible proportion cannot be denied even if it has not formally been elected (Central Economic-Administrative Tribunal. Decision of March 16, 2017)
9 Transfer and stamp tax.- The acquisition by SAREB of real estate not originating directly from a bank restructuring is also exempt from transfer and stamp tax (Central Economic-Administrative Tribunal. Decision of March 9, 2017)
10 Audit procedure.- When facts are being examined in the criminal jurisdiction, the authorities must hold back from following the administrative procedure (Central Economic-Administrative Tribunal. Decision of March 16, 2017)
11 Collection procedure.- The right to collect a tax debt becomes statute-barred if its enforcement has not been stayed in the judicial review jurisdiction (Central Economic-Administrative Tribunal. Decision of March 23, 2017)
12 Review procedure.- Economic-administrative tribunals cannot deny claimants’ petitions on the basis of facts other than those examined by the body in charge of the application of taxes (Central Economic-Administrative Tribunal. Decision of March 9, 2017)

3. Legislation

1 Base prices for calculating the value of mined gas, oil and condensate for 2016
2 Annual effective rate for the second calendar quarter of 2017, for the purposes of characterizing certain financial assets, for tax purposes